downsize

Downsize

To reduce the size of a company. A company downsizes when its operations are perceived to become inefficient and it wishes to concentrate on certain competencies in order to improve profitability and reduce expenses. Downsizing often reduces the number of jobs at the company. Because downsizing reduces expenses, it often increases the company's value and/or dividends for shareholders.

downsize

To reduce the size of a company, often by eliminating one or more divisions. Management may decide to downsize a firm in order to improve efficiency and to increase the returns to shareholders. Downsizing can cause a firm to grow smaller and more valuable at the same time.

Against the background of a company's overall strategy, we go on to consider all the factors that need to be taken into account when deciding whether or not to downsize and when formulating the downsizing plan.

Prepare by looking for general signs that your company may be about to downsize and put all jobs at risk, as well as specific signs that your job may be in jeopardy, whether or not a downsizing is imminent.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.